Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

A. Reduce the level of payment for use of the product

Reduce price for a comparable product

Lead prices down

No. SIC Year Note
1 3571 1987 Amdahl then revamped its testing and quality controls, creating a reliable computer with performance specifications increased 10% after the machine was first shipped. For the same money, the Amdahl machine runs about 40% faster than IBM's comparable machine.

<< Return to Use Steps